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CORRECTING and REPLACING: Gain An Insight In To South Africa UPS Markets.

DUBLIN, Ireland -- On the last graph, the report was incorrectly attributed to Datamonitor when it was by Frost & Sullivan.

The corrected release reads:


Research and Markets ( has announced the addition of the new Frost & Sullivan "South Africa UPS Markets" to their offering

This Frost & Sullivan research service entitled South African UPS Markets provides an overview of major challenges and opportunities in this fast-growing market. In this research service, Frost & Sullivan's expert analysts assess the market based on three key customer groups: industrial, commercial, and public infrastructure.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By End User Vertical:

- Industrial: Oil and gas applications, chemicals, food and beverage, manufacturing, utility and power generation

- Commercial: telecom, data centres, commercial centres, and IT

- Public/Infrastructure: Airport, health and hospital, railways and underground, public buildings, military, and aerospace


The following technologies are covered in this research:

- Stand-by UPS Systems: Stand-by uninterruptible power supplies run off-line, which means that the battery is not engaged until a power outage occurs. These units are the most basic and least expensive of uninterruptible power supplies and only offer the simplest level of protection against power failure. The market for these systems is intended only for small offices and home use because of their lower power storage capacity.

- Line-interactive UPS Systems: Line-interactive UPS are very similar to off-line UPS systems, but provide more benefits in terms of voltage regulation.

- On-Line UPS Systems: The basis for this unit is the same as the above-mentioned technologies, with the additional benefit of a rectifier that eliminates noise and harmonics, ensuring clean and regulated voltage to the load. These UPS systems are superior to the other types because of their ability to convert alternative current (AC) power to direct current (DC) and reverse the process to provide power to the connected equipment. There may be losses in efficiency due to the double conversion process that the power load requires, but these inconveniences are mitigated by improvements in the technology, which affect its manageability and connectivity options.

Market Overview

UPS System Sales Dependent on Favourable Economic Climate

The sales of back-up power systems are inevitably linked to fluctuations in power supply. Power crises, therefore, spell good news for uninterruptible power supply (UPS) companies. With South Africa prone to power outages, suppliers to this market can expect a surge in volume sales, but only as long as foreign investors perceptions of economic growth in this area remain positive. A perceived economic uncertainty can very easily dissuade investors from sinking funds into energy-intensive sectors.

While Eskom is the sole electricity provider in South Africa, the South African government is now looking to reduce its role, and is actively seeking private partners to this end. The aim is to have up to 30 per cent of South Africa electricity needs generated by independent power producers (IPPs). Until that happens, however, Eskom continues to be the exclusive provider, and has embarked upon an ambitious $13 billion infrastructure development programme, which includes the construction of new power stations. While the price of electricity in South Africa has always been a strong competitive advantage to attract foreign manufacturers, there have been price increase proposals by the National Energy Regulator (NER). Thus, UPS companies need to consider all these issues when projecting their future sales, says the analyst of this research service. A continuous demand for UPS systems may paradoxically be indicative of difficult situations ahead.

Sustained Growth Initiatives Increase Power Requirements and Boost Sales of UPS Systems

As part of the Accelerated and Shared Growth Initiative of South Africa, the Government is expected to invest a staggering $61.3 billion in infrastructure, with the aim of achieving a GDP growth of 6 per cent. This creates a requirement for the construction of additional power-generating capacity. These projected investments are expected to drive UPS sales in two key sectors in South Africa: telecommunications and tourism.

South Africa is the telecommunications leader in the African continent, with around 4.03 million installed exchange lines. This is expected to increase to 7 million lines in the next few years. Two-thirds of these new lines will be aimed at increasing the number of telephone users in rural areas, says the analyst. To operate optimally, the lines need to be supported by UPS systems, thus boosting the volume sales in the market. The South African tourism industry is also booming, and is valued at $10 billion annually. This sector has a projected annual growth rate of 12 per cent, and is estimated to be worth $45 billion by 2010. Hotel leisure groups, casinos and game resorts are all investing in back-up power systems to reduce the threat of customer dissatisfaction in the event of power shortages. In fact, the gaming board has already made it mandatory for casinos to install back-up systems for security purposes.

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Publication:Business Wire
Date:Jan 19, 2007
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